With Chinese demand swinging in favour of high-quality iron ore, is their a chance of NWH getting work from Mount Gibson's Koolan Island Restart Project? Its website states:
Koolan iron ore is very high quality and low in impurities. Mount Gibson acquired the project through its successful takeover of Aztec Resources in early 2007. Hematite shipments commenced in June 2007, and passed the 20 million tonne milestone in February 2014.
Operations were suspended in November 2014 following a seawall failure which resulted in the flooding of Main Pit. The operation is currently being reviewed to determine options to rebuild the Main Pit seawall and resume large scale production.
It is probably too late to get in on the the Koolan Island Restart Project. Mount Gibson's last quarterly report states:
The Koolan Island Restart Project is now in the phase of seepage barrier construction, and the Project currently remains on track to achieve first sales in the first quarter of calendar 2019. As we have stated previously, the high quality of ore from Koolan Island will set us apart in a market that is increasingly geared to premium quality iron ore products.
Any projects linked to quality haematite mining are likely to be funded, especially if the value of the quality ore can be enhanced in blends, where X tons of quality ore upgrades a multiple of that tonnage of marginally lower quality ore into a blend for which there is a steady demand. That is the reason why RIO progressed the Silvergrass mine relatively recently.
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